Japan - Bank of Japan (BOJ)

[winston]

Bets against Yen crater as volatility scares crowded carry trade

Hedge funds cut their wagers against the yen by 49,336 contracts to 20,243 in the week ended Aug 6, CFTC data released on Friday (Aug 9) show. That is the fifth-largest boost to trader sentiment in data going back to 2006.

Morgan Stanley estimated that some 60 per cent of yen-funding carry trades have been unwound in recent weeks.

JPMorgan Chase, meanwhile, said about three quarters of the global carry trade has been removed.

They have now shrunk those bearish positions to total US$1.8 billion from about US$5.7 billion the prior week.

The yen has been strengthening sharply in recent weeks, up 10 per cent against the dollar since it touched a 38-year low in early July.

Source: Bloomberg

https://www.businesstimes.com.sg/intern ... arry-trade

[behappyalways]

The President of the Bank of Japan once again warned that interest rates will be raised again "if the economy and inflation meet the target".
Japanese stocks withstood the pressure and rose for a consecutive week in the afternoon.
The yen rose above 146

日央總裁又放鷹 "若經濟.通膨達標"會再升息 日股頂住壓力午後翻揚周線連紅 日圓升破146｜非凡財經新聞｜20240823

https://m.youtube.com/watch?v=KF1-kCuL3zg

[behappyalways]

Real wages in Japan rose 2 consecutive times in July!
Inspiring the yen to hit a one-month high.
Will interest rates be raised again this month?
Experts estimate that this will only increase

日本7月實質薪資連2揚!激勵日圓創1個月新高 本月再升息?專家估這時間才升｜非凡財經新聞｜20240905

https://m.youtube.com/watch?v=3Ce-kPh_mRA

[behappyalways]

Yen Plunges After Ueda Sees Little Urgency To Hike Rates As "Upside Risks To Inflation Are Easing"
https://www.zerohedge.com/economics/yen ... are-easing

[winston]

Time's not right for rate hike, says Japanese premier

"I do not believe that we are in an environment that would require us to raise interest rates further," Ishiba told reporters yesterday night, adding he was not in a position to instruct the central bank on monetary policy.

Ueda said that the central bank was supporting Japan's economy and will move cautiously in deciding whether to raise interest rates further.

"I told the prime minister that we are supporting the economy with loose monetary conditions," Ueda said.

The BOJ will review rates on October 30-31, when the board also releases fresh quarterly growth and price forecasts. It holds another meeting in December.

Source: Agencies

https://www.thestandard.com.hk/section- ... se-premier

[behappyalways]

The latest speech by the Bank of Japan President paves the way for an interest rate hike.
The market interprets that it may take action in December!
The yen surged to 149 against the US dollar.
Experts estimate that there is a chance of knocking on the door of 140 by the end of the year.

日央總裁最新談話為升息鋪路 市場解讀12月可能出手! 日圓兌美元急升見149字頭 專家估年底有機會敲140大門｜非凡財經新聞｜20241201

https://m.youtube.com/watch?v=Dh0z1Kv-PvE

[behappyalways]

Bank of Japan keeps rates steady as proposal suggests next hike is nearing
https://www.theedgesingapore.com/news/g ... ke-nearing

[behappyalways]

BOJ’s deputy chief signals chance of rate hike next week
https://www.theedgesingapore.com/news/j ... -next-week

[behappyalways]

Bank of Japan is set to raise interest rates, Trump permitting
https://www.theedgesingapore.com/news/j ... permitting

[behappyalways]

Japan hikes rates to highest since 2008 as sustained inflation, rising wages signal ‘virtuous cycle’ in play
https://www.cnbc.com/2025/01/24/bank-of ... -2008.html